Army Charities Hoarding Millions of Dollars

Researcher: Ashleigh Hvinden

Faculty Evaluator: Diana Grant

 

Army Emergency Relief hoarded an excess of  $345 Million in the fiscal years 2003-2007 according to an Associated Press investigation of tax records. The AER was created in 1942 for the sole purpose for providing financial support to those whose family members were financially dependent on the soldiers who were taken away form their families and at war. However, somehow the original mantra of the AER has changed drastically with the dramatic changes of finances over the years. Now, the AER is only giving out 91% of the accumulated money— and as loans, which defeats the entire purpose. If the families of the soldiers do not pay back the loan in the proper allotted time, there are severe repercussions. The question is where is the other 9% going? Is it going to the four hundred workers who work for the Army Emergency Relief? Is it going to the hospitals? The money trail accumulated from private donors, schools, and non-profit organizations is fraudulent and sketchy.

 

“Probe finds Army Charity is Hoarding Millions.” The Associated Press, 22 February 2009.  www.commondreams.org/print/38527

 

 “Veterans Advocates Riled by Report on Army Charity.” Jeff Donn,The Associated Press. http://www.commondreams.org/headline/2009/02/24-4

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  • http://www.aerhq.org Andrew Cohen

    The synopsis posted is unfortunately factually incorrect and does a disservice to investigative research. The posting appears misstate the content of, and rely solely on, two articles in which the reporter was critical of AER’s operations and failed to provide full disclosure of AER’s performance and financial data.

    The facts concerning AER’s operation and finances include:

    - That between 2003 and 2007, Army Emergency Relief distributed a quarter of a billion dollars in financial assistance to 258,000 Soldiers and Families.

    - AER has always met the need for financial assistance. No Soldier or their Family member has ever been denied financial assistance for a valid need due to a lack of funds or need to hold funds in reserve. There is no limit on the amount a Soldier may request and no limit on the number of times a Soldier or Family member can request assistance.

    - To meet the financial needs of those we serve, AER spent every dollar in donations received during that time period plus $51.5 million of investment capital to meet the increased demands of assistance from Soldiers and Their Families.

    - In 2008, AER provided $83 million to 72,000 Soldiers and Families. 24% of that amount was in the form of tax free grants and 76% was for interest free loans. Soldier repayment of interest free loans account for 65% of available funds and provides a cash-flow that is used to respond to future needs by Soldiers and Families.

    - In 2003, children and spouses of Soldiers on active duty and retirees received $3.6 million in scholarships (all grants). In 2008, Army Emergency Relief scholarships increased to $13 million. From 2003 to 2008 the total amount of assistance has steadily grown from 37.4 million in 2003 to 83 million in 2008.

    To truly understand how AER operates and view the AER independently audit financial statements the researcher view AER’s Annual Report posted on its website. If the researcher has further questions regarding how and why AER operates, she is more than welcome to contact me, the Treasurer of AER, for answers to her questions. True research involves objectively viewing a subject from multiple perspectives to make informed observations. Since the researcher’s synopsis fails to indicate any independent review of AER’s documents of discussion with AER personnel; it appears an important step may be missing.

    Sincerely,

    Andrew H. Cohen
    Deputy Director for Finance
    and Treasurer

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